TM

HOW TO PAY OFF THE DEBT

Introducing Coupon Stripping

A payments tax balances the budget, and that would allow us to finallypay off the national debt.

As with Quantitative Easing, the Fed would generate reserves to buy back Treasury bonds. With Coupon Stripping, however, the Fed would then cancel the bonds.

We can not pay off the debt in a lump sum, as that is too great of an amount to be redeployed in the capital markets all at once. It would take about six years to fully repay the debt with Coupon Stripping.

How the National Debt Damages the Dollar

When we issue Treasury bonds, it is the same as printing money. We have created two forms of money: currency and Treasury bonds.

Treasury bonds are why a loaf of bread costs $3 today instead of ten cents as it did in the 1940s.

The difference between currency and Treasury bonds is that bonds earn interest, which is what makes them so problematic.

We end up paying the taxes we are trying to avoid by borrowing. We pay them through the inflated cost of goods over time.

The Financial Freedom Act is brought to you by the Foundation for a Better Economy